Breakeven Is Near for Nocera, Inc. (NASDAQ:NCRA)
Nocera, Inc. (NASDAQ:NCRA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nocera, Inc., together with its subsidiaries, designs, develops, and produces land-based recirculation aquaculture systems for fish farming in Taiwan. With the latest financial year loss of US$9.6m and a trailing-twelve-month loss of US$11m, the US$11m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Nocera will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Nocera
According to some industry analysts covering Nocera, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$7.3m in 2023. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 116%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Nocera given that this is a high-level summary, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Nocera has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
This article is not intended to be a comprehensive analysis on Nocera, so if you are interested in understanding the company at a deeper level, take a look at Nocera's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:
Valuation: What is Nocera worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Nocera is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Nocera’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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